Message #4 From:
Jason Date: January 11, 2008 06:24:44 PM
Little Squaw Examines Alaska's Livengood Bench Placer Gold Deposit
Exclusivity Agreement Signed
Little Squaw Gold Mining Company
(OTCBB: LITS)
($0.85) ("Little Squaw" or "the Company") announces that it has entered
into an Exclusivity Agreement ("the Agreement") on the Livengood Bench
placer gold deposit in Alaska. The exclusivity fee is $100,000. The
Agreement affords the Company the exclusive right to conduct a
comprehensive analysis of the property and make commercial viability
studies over the next two months. After completing due diligence and mining
studies, Little Squaw will have the right to enter into a definitive
agreement, prior to March 5, 2008, to purchase the property. The purchase
terms are $8.35 million in three annual payments, each consisting of nearly
equal values of cash and the Company's common shares. Should Little Squaw
decide to proceed with the purchase, it will pay out $4.45 million in cash
and roughly 4.33 million shares over the next three years, assuming a
90-cent stock price.
"Acquisition of this production-ready property is another example of our
commitment to build value for our shareholders by focusing on highly
prospective gold assets," said Little Squaw President, Richard Walters. "If
the property is purchased, our Company will be making a rapid transition
from explorer to gold producer over the next twelve months," he added.
The Livengood Bench property is located 75 miles north of Fairbanks and has
paved-road access via the all-weather Alaska pipeline highway. The property
consists of unpatented and patented federal mining claims, along with some
State of Alaska mining claims. The claim block comprises approximately
3,800 acres. The principal mining area consists of 747 acres of fee simple
(patented claims) land.
Livengood Bench is among Alaska's most historically productive placer gold
deposits, having produced over 400,000 ounces of gold since 1914. This mine
was placed on care and maintenance in 2000 due to low gold prices. The
existing database includes 2,370 drill holes, which outline 12.8 million
cubic yards of gold-bearing alluvium (gravel). This mineralized material is
believed to contain about 355,000 ounces of recoverable gold. All major
state and federal mining permits necessary for the commencement of mining
are in place.
Richard Walters, President of Little Squaw Gold Mining Company, is
responsible for this news release. For additional information regarding
Little Squaw Gold Mining, contact Susan Schenk, Manager of Investor
Relations, by telephone at (509) 535-6156, or by e-mail at
ir@littlesquawgold.com. Little Squaw maintains a comprehensive Web site at
www.littlesquawgold.com.
Little Squaw Gold Mining is engaged in the business of precious-metals
discovery. This endeavor carries certain risks that are commensurate with
the potential rewards of such efforts. These risks cannot be quantified
and should not be taken lightly. All statements made here regarding the
firm's investment potential should be considered "forward-looking
statements" as defined by prevailing regulatory guidelines. As
forward-looking statements, these items represent the measured professional
judgment of management. They do not, however, represent guarantees, and
unforeseen and/or unforeseeable future developments that may render them
either incomplete or incorrect. Actual results, plans, programs, and
financial performance may differ materially from express or implied
forward-looking statements.
Contact:
Susan Schenk
Manager of Investor Relations
(509) 535-6156 ir@littlesquawgold.com
